Employee Benefits & How is Mool Different

What is the Employee Benefits section?

Within an HR or payroll system, the Employee Benefits section is a dedicated module for managing and tracking the various non-salary perks and allowances provided to employees. These benefits play a crucial role in employee compensation and have significant implications for both employees and the organization.

Key Components of an Employee Benefits Section in India:

• House Rent Allowance (HRA): Reimbursement for rent paid by employees (subject to specific conditions).
• Leave Travel Allowance (LTA): Reimbursement for travel expenses incurred during leave (subject to limitations).
• Children's Education Allowance: Reimbursement for educational expenses of children.
• Medical Reimbursement: Reimbursement for medical expenses (subject to limits).
• Transport Allowance: Reimbursement for commuting expenses.
• Meal Coupons: Provided to employees for meals.

Other Benefits:

• Health Insurance: Medical, dental, vision coverage.
• Life Insurance: Group term life insurance.
• Retirement Plans: Provident Fund (PF), Gratuity.
• Paid Time Off (PTO): Vacation, sick leave, holidays.
• Performance Bonuses: Incentive schemes.
• Stock Options: Employee Stock Ownership Plans (ESOPs).

Why does Mool need this data?

• Mandated by law: Ensuring compliance with Indian tax laws and regulations related to employee benefits.
• Calculation requirements: Accurate calculation and reporting of taxable and tax-exempt components of benefits.

Why Move Beyond Percentage-Based Compensation Structures?

Traditional percentage-based structures are outdated and rigid, often failing to address the diverse needs of employees. These cookie-cutter approaches limit flexibility and restrict benefits to a predefined framework, leading to missed opportunities for employees to optimize their tax liabilities.

Challenges with Percentage-Based Structures:

• Limited Personalization: Employees are confined to company-defined structures, which often don't align with individual needs.
• Tax Optimization Challenges: Employees may miss out on tax-saving opportunities due to the lack of tailored allowances.
• Higher Costs for Companies: The rigidity of such structures increases hiring and retention costs as employees seek more adaptable compensation packages.

Enter Mool’s Recommended Salary Structure

At Mool, we believe that compensation should adapt to the employee, not the other way around. Our approach empowers employees to design their own salary structure, based on their unique needs and spending habits.

Benefits of Mool’s Personalized Structure:

• Tax Optimization: Employees can include allowances aligned with their usual expenses, unlocking tax benefits they might not have been aware of.
• Increased Take-Home Pay: By leveraging tax-saving allowances, employees enjoy a higher in-hand salary.
• Full Flexibility: No fixed percentages or rigid methods—every salary structure is personalized and built entirely around the employee.

How It Works:

• Employees make declarations through their self-service portal.
• Mool generates a tailored salary structure that maximizes tax savings while addressing individual needs.

In Conclusion

This modern approach not only enhances employee satisfaction but also helps companies attract and retain top talent by offering a truly flexible and personalized compensation system.